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Sky shares shot up 20% today after confirming its blockbuster deal for All Blacks and Super Rugby broadcasting rights.
Shares in Sky TV rallied by 18c in the opening minutes of trade on the back of a deal with between the pay tv operator and the New Zealand Rugby was confirmed.
By 10.05 am Sky TV shares were trading at $1.07.
Sky TV confirmed this morning it had acquired the All Blacks and Super Rugby Rights until 2025.
The deal also involves New Zealand Rugby taking a 5% stake in Sky TV and could mean other broadcasters are locked out of rugby coverage in the future.
The deal has had an immediate impact on Sky shares, which last week plunged below $1 for the first time in its 21 years as a listed company off the back of the Spark's acquisition of the Black Caps cricket rights.
In the aftermath, Sky's share price dropped by 18c (16.22%) to as low as 87c last week.
In an announcement posted to the New Zealand Stock Exchange, the broadcaster told investors it had finalised the major deal.
The company did not say how much the deal was worth, but sources suggested Sky tabled an offer of $400 million back in September.
The company confirmed that the cost of the rights materially increased from its current arrangements.
News of the deal first broke last week Friday, when sources told the Herald the deal was in the final stages.
Sky said today the deal was reached on the evening of October 13 and was subject to shareholder approval.